business

Chinese shares close lower, coal-related share prices surge

BEIJING, Dec. 18 (Xinhua) — Chinese shares closed lower Friday, despite the price surge seen in shares related to coal, mining and electricity enterprises.

The benchmark Shanghai Composite Index went down 0.29 percent to stand at 3,394.9 points, while the Shenzhen Component Index closed 0.26 percent lower at 13,854.12 points.

The combined turnover of stocks covered by the two indices stood at 771.2 billion yuan (about 117.9 billion U.S. dollars), expanding from 756.9 billion yuan on the previous trading day.

Bucking the downward trend, shares related to the coal, mining and electricity sectors led the gains throughout the trading day.

Henan Dayou Energy Co., Ltd., a company dealing with raw coal mining, processing and selling, saw its shares rise by the daily limit of 10 percent to close at 4.13 yuan apiece.

Hunan-based hydroelectric power generation firm Hunan Development Group Co., Ltd. saw its shares jump over the daily limit of 10 percent to close at 7.12 yuan per share.

China has reported spikes in electricity demand amid steady economic recovery and lower temperatures since early December, according to China’s economic planner.

The electricity grid came under particular strain in central China’s Hunan Province and east China’s Jiangxi Province, the National Development and Reform Commission said in a previous statement, noting that residents in most areas remain unaffected and the overall electricity supply is stable.

The commission also pledged more efforts to increase supply and adjust demand to lower coal prices. 

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